ACG moves to repossess jets from Avianca Brazil

Aviation Capital Group has moved to repossess eight Airbus A320s and one A319 that were leased to embattled carrier Avianca Brazil.

The lessor states that the leases were terminated on 12 December, and it has initiated legal proceedings to take the nine aircraft back.

Flight Fleets Analyzer shows that the A320s range in age between 5.1 and 7.1 years, while the A319 is 6.5 years old. They are all powered by CFM International CFM56 engines.

The lease terminations come two day after Aircastle terminated leases on one A330-200 and 10 A320s leased to the Brazilian carrier, while local reports indicate that BOC Aviation is planning to take back two A320neos. The Sinagapore-based lessor declined to comment on the report.

Avianca Brazil has sought to protect its fleet from repossession by lessors by filing for bankruptcy protection in a Brazilian court. The airline told FlightGlobal on 12 December that it has secured its fleet, but would not confirm how many aircraft remain in its possession.

The airline, which shares a name with Colombian carrier Avianca but is separate to it, leases 50 of its 58 aircraft. Fleets Analyzer shows that Airbus Financial Services, MC Aviation Partners and GECAS are some of the other lessors exposed to it.

In early December, the carrier indicated that it planned to return eight aircraft to lessors as part of capacity reduction plans announced in August, but did not specify which aircraft.

The airline reported a net loss of R176 million ($45.8 million) in the first six months of 2018, financial data filed with Brazil's civil aviation authority ANAC shows. In the second quarter alone, it reported a net loss of R141 million.